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to the law of demand, if price increases, quantity demanded of a good or
service will decrease or vice versa. Price elasticity of demand tells us how
much quantity demanded will decrease when price increases or how much quantity
demanded will increase if price decreases.
the other hand, according to the law of supply, if the price increases
quantity supplied of a good or service will increase. Similarly, if price
decreases, quantity supplied will decrease. The degree of sensitivity
(responsiveness) of production/supply to a change in price is measured by the
concept of price elasticity of supply.
revenue is calculated as the quantity of a good or service sold multiplied by
its market price. Thus it is a measure of how much money a company makes from
selling its product. The core objective of a firm is maximizing profit. One of
the ways to maximize profit is increasing total revenue. The firm can increase
its total revenue by selling more items or by raising the price. Among others
this depends on the nature of the price elasticity of demand. Moreover, the
length of time is an important factor in determining price elasticity of demand
· Explain the relationship between the price
elasticity of demand and total revenue. What are the impacts of various forms
of elasticities (elastic, inelastic, unit elastic, etc.) on business decisions
and strategies to maximize profit? Explain using empirical examples.
· Is the price elasticity of demand or supply
more elastic over a shorter or a longer period of time? Why? Give examples.
· What are the impacts of government and market
imperfections (failures) on the price elasticities of demand and supply?
Assignment should be a minimum of four pages in length, excluding title page
and reference page. Your paper must incorporate several quality references, and
it must be organized in APA format.
your paper to the Unit 2 Dropbox by the end of Unit 2.
GB540Unit 2 Assignment Rubric
Content and Analysis
· Describe the Relationship between Economic
Freedom and Variations in Wealth among countries.
· Selected a country from the Index
· Explain the country’s ranking while
including reference citations from additional source material.
· Summarized how the chosen country’s ranking
has change over the last 5 to 10 years
· Five pages in length
· Included at least two reliable references
· Included the Index of Economic Freedom as a
Grammar, APA Format
Solution ID:393783 | This paper was updated on 26-Nov-2015Price : $50